The figures look great, but is the whole business at risk?
This large B2B player was active in just one vertical in one market. A key sensitivity was the potential for an aggregator to combine the buying power of the target’s customers, and potentially move their activity to a new platform. While this scenario would put the target’s entire business model at risk, Ocean’s detailed analysis of the target’s customers (both end-users and advertisers) revealed that the value added by the target was in fact extremely difficult to recreate, and that the motivation for customers to find a substitute was very low. Armed with the comfort that this key risk factor was extremely unlikely to happen, our client was able to proceed with the process.
